Social Security is one of the most important benefits available to American retirees. In 2019, the average monthly benefit was $1,461.
This number will go up in 2020, but how much will it increase in 2023? That depends on the rate of inflation.
In this article, we’ll break down exactly how much your monthly check will increase in 2023, depending on the rate of inflation. The wage base is the maximum amount of earnings that are subject to taxes. For 2019, that amount is $132,900. So, your benefit amount won’t be as high if you earn more than that.
In 2023, the wage base is scheduled to increase to $137,700. That means that if you earn more than $137,700 in 2023, your benefit amount will be reduced. The last time social security saw an increase was in 2020. How much of an increase was it? 2.8%. That’s not a huge raise, but it’s something. And it’s better than nothing, right?
Social Security Dilemma Prevail
Depending on your circumstances, you may see a slightly larger or smaller increase. For example, if you’re a high-income earner, your raise will be smaller than if you’re on a lower income. The Social Security Administration takes a variety of factors into account when determining how much to raise social security payments.
But one thing is for sure—everyone will see at least a 2.8% increase in their social security checks in 2023. So, how much is Social Security going to increase in 2023? That’s a great question. And the answer is… it’s hard to say.
The Social Security Administration bases its annual cost-of-living adjustment on the Consumer Price Index, which measures inflation. Inflation has been relatively low in recent years, so the increase is expected to be small. But even a small increase can make a big difference over time.
For example, if your monthly benefit is $1,000, an increase of just $3 would add up to $36 extra dollars over a year. Not too bad, right?